Blockchain market still lacks trustworthy sources of information and education
Everyone is talking about cryptocurrencies, but sadly cryptos can be confusing as there is not much in the way of fully reliable sources of information. There are also lots of options to choose from, making it hard to decide or even get started. Below are some tips one should consider while doing his own cryptocurrency research.
Not every article is reliable
Many articles can be paid articles. Even one of the most popular cryptocurrency resources, Coindesk and Cointelegraph, monetize paid content, so you might get a false impression of validity when reading a submitted press release from crypto projects. To take an article seriously one should check where the facts or data are coming from and do you trust it or not. For example, someone noticed on Reddit that Cointelegraph was posting fake news about Vitalik Buterin advising the Catalonian government on crypto platform and Vitalik responded that that was false.
You should also consider who may benefit if the news becomes popular as sometimes neutral or negative news may be published as positive news (and vice versa). For example, when a new bank or a payment service joins the Ripple network it leads to an increase in the token price, while it actually doesn’t influence the token value because Ripple technology and currency are separate from each other. The project is initially oriented as a technology supplier for banks and providers of payment systems and sponsored by them.
You can predict all you want…
The cryptocurrency price predictions are often speculative and as such are far from being objective. The host of the Youtube channel “Altcoin Picks” brings a few such examples with Bitcoin and the cryptocurrency market in general. He also claims that even if you are investing money you could afford to lose. In the end, no one is able to provide you with 100% guarantee of their forecast.
If you have been involved in trading either stock, fiat currencies or cryptocurrencies then you may have come across the term ‘buy wall’ or ‘sell wall’. Some of these walls are legitimate, and it just means that a lot of people or one person with a lot of money believes that at that particular price it is the right decision to purchase (or sell), but sometimes these walls are attempts at price manipulation. Someone who holds a large percentage of the market share of a coin is called a whale — they are the big fish in the sea, and they cause a splash. So when a whale has enough funds to put a large buy order in they can single-handedly create, for example, a buy wall. They would do this to try and manipulate the market, creating fake hype. That will definitely influence the price and there will be some news about it, which rarely explains the actual reasons for the cryptocurrency movements. This is why it is something that you cannot use alone to guide your trade choices.
There are even some special social media channels focused purely on trade analytics. However, one should be careful with them as well. As one of the BitcoinTalk members explains “Such groups aren’t made to help people, but to profit from the people. They buy the coins before telling their members to buy, hence raising the price” and many other people in the thread share this opinion.
Blockchain market still lacks enough professionals in the industry as there are no generally accepted educational standards. There are lots of online courses (free and on a fee basis) on the market now. However, it’s hard to find a good course among the hundreds which are on the market. The educational programs are changing fast and according to current needs. For example, Holberton School of Software Engineering in San Francisco incorporates blockchain programming training into its general curriculum and relies on meetups to transmit knowledge from mentors to students, according to co-founder Sylvain Kalache. “Every six months, we organize an event where we invite mentors to discuss courses,” Kalache added. “Depending on their arguments, we decide to keep some topics.” Students are “learning how to learn. Nobody knows what the next thing is in the next two months or three years.” Holberton School’s goal is to transform students into full-stack engineers who understand every layer of a system.
To sum up, while there are tons of articles and courses in the world of crypto, one should always check where the data is coming from, whose interest the news may serve, use common sense and listen to your inner voice while making decisions.